Challenge

Financial institutions around the world must meet KYC compliance requirements to minimize the risk of bad actors carrying out financial crimes. That means they need to verify all customer identities, understand the nature of each customer’s financial transactions, and assess each customer’s potential risk of engaging in money laundering, terrorism financing and sanctions circumvention activities. Banks that fail to maintain adequate KYC controls can incur significant financial penalties and, in some cases, be ordered to cease operations.

One global bank was mandated by regulators to strengthen its KYC compliance processes. While eager to comply, the bank simply lacked the processing capacity to identify, understand and verify its customers’ identities and risk profiles in the timeframe required. A backlog of high-risk customer identities needed to be verified and assessed within 12 months.

Strategy and solution

With customers spanning the globe, the bank needed a managed services provider that could hit the ground running with a large talent pool well versed in global and country-specific KYC requirements and remediation solutions.

Global delivery centers

Accenture quickly deployed remediation experts across four global delivery centers to help the bank tackle its backlog of identity cases and manage the end-to-end KYC compliance activities.

Streamlined KYC remediation processes

Delivery center professionals streamlined processes—including aggregating and verifying customer information, gathering missing information and completing and submitting risk profiles for each customer.

Quality assurance

A central team of bank and Accenture resources was established to oversee the new KYC processes, deliver quality assurance, training and change management services to meet all regulatory requirements.

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Integration with Lifecycle Management Team

Accenture now operates as an extension of the bank’s Client Lifecycle Management Team, managing the day-to-day KYC activities and escalating cases, as needed, for additional review. Once the customer information is verified and risk profiles are completed, the bank issues final approvals. The bank’s compliance experts are also responsible for defining the risks and understanding the nature and business of each case under review.

Currently, the bank is working with Accenture to explore the use of SynOps—Accenture’s innovative human-machine operating engine that orchestrates the optimal synergy of data, new technologies and talent—to improve workflows and customer-screening processes. The new screening approach will use automation and artificial intelligence to augment and accelerate the team’s human screening capabilities.

Transformation

The bank has further established intelligent KYC operations and created a solid line of defense against customers that might otherwise engage in criminal financial activities. With the help of Accenture’s Compliance as a Service, the bank has:

Tapped into flexible capacity and established delivery centers around the world to ensure it has the skills and resources to meet its compliance obligations.

Optimized and standardized compliance processes, leading to improve relationships across the bank’s functions.

Integrated applied intelligence, coupled with human diligence and robust training to assure a higher quality of casework, as evidenced by a steep decline in false positive determinations.

Reduced average KYC case processing times by 15 percent.

Materially reduced the bank’s backlog of KYC cases.

Greater confidence. It is identifying and eliminating bad actors’ financial transactions and activities and streamlined the onboarding processes by consolidating information requests.

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